Evolution of management thought

MBA presentation about evolution of management thought
subject ( MCED )

1. Evolution Of
Management
Thought

2. Introduction

3. Introduction

4. Evolution Of Management Thought
Classical Theory
Neo classical Theory
Modern Theory

5. Definition of classical approach
Classical approach is the oldest
formal school of thought which began
around 1900 and continued into the
1920s.
Its mainly concerned with the
increasing the efficiency of workers
and organizations based on
management practices, which were
an outcome of careful observation.
Classical approach mainly looks for
the universal principles of operation in
the striving for economic efficiency.
Classical approach includes scientific.
Administrative & bureaucratic
management.

6. classical Theory
oScientific management
oAdministrative
management
oBureaucratic management

7. Scientific management
F.W Taylor’s
contribution ( 1856-1915)
oScientific management focus on
workers and machine relationship.
oOrganizational productivity can be
increased by increasing the
efficiency of production processes.

8. General approach

9. criticism

10. Contributions of Gilbreths
oScientific management focuses on
one best way to do job.
oIncludes both analysis and
sythesis.
oIncludes necessary elements for
work.
oIntroduced chart form of
representation.

11. Administrative management
Administrative management focuses on the managers and
the use or principles and functions for improving organizational functioning.
The administrative management school treated as management as a
process get work done through and with people.
Henri Fayol, James D Mooney, Alan C Reilly are the pioneer
contributors to the administrative management though.

12. Henri Fayol
Fayal's administrative
management focuses on
managers and basic management
functional.
Classification of business
activities
Basic functions of a managers
Qualities and skills of a
managers
Principles of management

13. Classification of business
activities
Fayol divided activities into following
six groups
Technical activities
Commercial activities
Financial activities
Security activities
Accounting activities
Managerial activities

14. Basic functions of a
manager
oPlanning
oOrganising
oCommanding
oCoordinating
oControlling
Qualities and skills of a
manager
oPhysical quality
oMental quality
oMoral education
oSpecial knowledge
oExperience

15. Basic principles of
management
oDivision of work
oAuthority and responsibility
oDiscipline
oUnity of command
oUnity of direction
oRemuneration
oCentralisation
oScalar chain
oOrder
oEquity
oInitiative

16. James D Mooney &
Alan Reilly
The coordinative principle
The scalar principle
The functional principle
The phase or functionalism

17. Evolution
Let us evaluate administrative
mgt approach in terms of it’s
strength and limitations from the
view point of development mgt
though

Theory of authority
structures
Charismatic authority structure
Traditional authority structure
Rational legal authority structure

18. BUREAUCRATIC MANAGEMENT
Max Weber [1864-1920 ].
Rules and regulations to eliminate managerial inconsistencies.
Authority is the power to hold people accountable for their actions.
Positions in the firm should be held based on performance not social
contacts.
Position duties are clearly identified. People should know what is expected
of them.
Lines of authority should be clearly identified. Workers know who reports to
who.

19. Bureaucratic Principles

20. Bureaucratic Principles
oDivision of work
oHierarchy of position
oRules and regulations
oImpersonal conduct
oStaffing
oTechnical competence
oOfficial records

21. Ranking organisations by Bureaucratic orientation

22. Contribution of classical management
o
The identification of mgt functions such as planning, decision making,
organising and controlling provide.
oThe contributions of the classical school go beyond the important work and
identifying mgt field and its functions and principles.
Limitations
The classical school of mgt throught heavily on the concept or economic
man, which placed emphasis on an individuals related pursuit or economic
objective. However the social needs or employees were neglected.

23. Neoclassical Theory
oAlso known as “Behavioural science approach to modifying and improving
the classical theory”.
oNeoclassical theory gives importance to human and social aspects of the
water and his relations in the organization.
Elements of Neoclassical theory
Hawthorne Experiment
Human Relations Management
Behavioural science approach

24. Hawthorne Experiment
oConducted by Elton Mayo at
Hawthorne plant & general
electronic company (GEC)
between1927 and 1932 at Chicago.
oObjective of the experiment was to
find out the behaviour and altitude
of workers at.
4 phases of Hawthorne
Experiment
oIllumination Experiment (1924-1927)
oRelay assembly room experiment
(1924-1928)
oMass interviewing programme
(1928-1930)
oBank wiring room study (1931-1932)

25. Critiesms of Hawthorne
experiment
oLack validity
oMore importance to human
aspects
oEmphasising on group decision
making
oIt was not concluded scientifically
oOver importance to freedom of
workers

26. Human Relation Movement
Human relation is involving people in org in order to develop
team work which effectively fulfils their needs and achieve org goals.
Features are :
Positive work environment
Focus in on people
Sound human relations

27. •Behavioural science approach

28. Modern Theory
Modern management has grown with the growth of social-
economics and scientific institution.
Quantitative management approach
Systematic approach
Contingency management approach

29. Quantitative Approach
oQuantitative approach also called Operation Research
oScientific Method
oDecision Making
Major contributors in Quantitative approach are : Johan MacDonald,
George R Terry, Andrew Szilagyi.

30. Systematic approach
The system approach to management is essentially a way of thinking about
organizations and management problems
From the system perspective management should focus on efficiency and
effectiveness in each part of the organization affect other parts of the
organization

31. Advantages
oGood basis of control.
oDevelops coordination on
specialized activities.
oEfficient plan of action.
oIt concentrates on end results
rather than means.
oAbstract approach.
oLack of universality.
Disadvantages

32. Contingency or situational approach
There cannot be a particular
management action which will be
suitable for all situations.
The only action is designed on the
basis of external environment,
internal states and needs.

33. Advantages
oEnables management to change
employee roles to meet individual
needs.
oReactive model of business
management.

Disadvantages
oInadequate literature.
oComplex.
oDifficult empirical testing.
oReactive not proactive.

34. Recent Developments in Management Thought
Total quality management ( TQM)
Search for excellence

35. Search for Excellence
oA bias for action
oCloseness to the customer
oAutonomy and entrepreneurship
oProductivity through people
oHands on, value drive
oStick to knitting
oSimple form, learn staff
oSimultaneous loose-tight properties
oLeadership-Management by Wandering Around

36. Let us sum up